By Rico K. Setyo
Since 2007, the financial crisis has taken a toll on both individuals and businesses. For the past two years, many businesses and corporations have fallen and filed for bankruptcy. However, corporations in the financial and commercial industry are not the only victims of bankruptcy, many consumers have fallen to bankruptcy filings.
The amount of American consumers filing personal bankruptcies has reached 9% which is considered the highest in four years. In addition the amount of total bankruptcies exceeded 1.4 million. Many people are still holding a lot of debt like credit cards and home equity loans. Since unemployment continues to rise, these people who have a lot of liabilities are not able to pay their creditors which ultimately lead to bankruptcy. However, many people have found alternatives to pay their debts by tapping into their retirement funds and savings.
The government is trying to help these people by passing an unemployment extension bill which was recently passed by the senate. This bill will help Americans by giving them an additional 20 weeks of unemployment benefits. Since unemployment is closely connected with bankruptcy, passing this bill will hopefully help some people with their financial struggles.
Another way to reduce the amount of people filing for personal bankruptcy is taking alternatives to relieve debt. Some of these alternatives are debt settlement, debt consolidation & debt consolidation loans, and consumer credit counseling.
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